No matter how well you plan for retirement, there are surprises that could throw you for a loop. The stock market might crash unexpectedly. Your healthcare costs might increase.
Or, worse yet, you could end up needing long-term care at some point. But one hiccup you should know to plan for is inflation. Over time, the cost of living is likely to rise.
And if you aren't prepared, you could easily end up losing out on buying power. These two adjustments to your retirement plan could help you avoid that fate. Act 2 Could Be 15x Bigger.
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Continue » It's fairly common for retirees to reduce their stock holdings to minimize risk in their portfolios. But while it's OK to de-risk to some degree, you don't want to dump your stocks completely. Doing so could cause your portfolio to trail inflation, leading you to lose buying power and putting your savings at risk of being depleted.
If you're not comfortable holding individual stocks in retirement, buy shares of an S&P 500 exchange-traded fund (ETF). This effectively gives you exposure to the market. Or load up on dividend ETFs that generate steady income.
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